We print below extracts from one section, dealing with the liberation war and foreign policy from a report given to the National
Committee of the People's Political Conference. The whole report will appear in Communist Review for November.

A YEAR HAS ELAPSED since the founding of the People's
Republic of China on October 1, 1949. This has been
a year of great victories and swift advance for the
Chinese people.

We have traversed the past year under conditions of
continuous victories in the people's liberation war.
The Chinese people's war of liberation, which began
in July 1946, had already achieved fundamental victory
on the eve of the founding of the People's Republic of
China in 1949. But, at that time, the remnant of
Kuomintang brigands still occupied the South China
area, with Canton as its centre, the South-West China
area, with Chungking as its centre, and some islands.

During the past year, the People's Liberation Army
liberated all South China and Fukien Province. It later
liberated all South-West China—with the exception of
Tibet, the Choushan Islands, the Tungshan Islands, and
other islands. Our army wiped out 203 entire enemy
divisions, consisting of about 2,180,000 men.

The Chinese people have annihilated the American-
equipped Kuomintang brigand armies throughout
China's mainland and won this enormous victory. What
lesson can we learn from this? The most important
lesson is: such a big victory can never be an accidental
phenomenon of history, but is the necessary outcome of
the many revolutionary struggles of the Chinese people
during the past century. Such an enormous, swift and
thorough victory cannot be conceived apart from the
selfless support of millions of people.

China United

This victory of the Chinese people is entirely different
from all the "unifications" in China's history. Formerly,
there was this and that sort of "unification", but the
unifiers were either the oppressors of the people from
the start or else became so afterwards. Therefore, they
could not achieve real unification, and such unifications
could not but collapse after a little while.

Today the first unification of the Chinese people has
emerged. The people themselves have become the
masters of Chinese soil, and the rule of the reactionaries
in China has been irrevocably overthrown.

Since the enemy annihilated by the Chinese people
was armed by the U.S. Government, then we can completely affirm that the Chinese people have not only won
victory over the enemy at home, but also over the enemy
abroad—that is, the imperialist interventionists of the
United States. If the American imperialists still want
to intervene in and invade China with whatever new
means and in whatever new forms, they will then meet
with the same defeat that befell the Kuomintang.

The struggle between the Chinese people and the
remnant of Kuomintang reactionaries has not yet come
to an end. This is because Taiwan, which is occupied
by the reactionary remnants, is now under the direct
control of the American Navy and Air Force.

The People's Liberation Army is determined to
liberate Taiwan from the grip of the American aggressors, and to clear out the lairs of the reactionary
brigands of China once and for all. It will be seen that, in the war for the liberation of Taiwan, our strategic
position is much better than any enemy's. On our side
stands inspired righteousness; our rear is close, vast and
consolidated and we are now redoubling our efforts for
the final victory. The People's Liberation Army is also
determined to march westward to liberate the Tibetan
people and defend the frontiers of China. We are willing to undertake peaceful negotiations to bring about
this step, which is necessary to the security of our
motherland. The patriots in Tibet have expressly welcomed this, and we hope that the local authorities in
Tibet will not hesitate in bringing about a peaceful solution to the question. .

Foreign Policy of People's China

The foreign policy of the People's Republic of China
has been clearly laid down in the Common Programme
passed by the Chinese People's Political Consultative
Conference. The Common Programme Stipulates:
"The principle of the foreign policy of the People's
Republic of China is protection of the independence,
freedom, integrity and sovereignty of the country, upholding of lasting international peace and friendly cooperation between the peoples of all countries, and
opposition to the imperialist policy of aggression and
war."

On the question of establishing diplomatic and trade
relations with foreign countries, the Common Programme stipulates: "The Central People's Government
of the People's Republic of China may, on the basis
of equality, mutual benefit and mutual respect for territory and sovereignty, negotiate with foreign governments which have severed relations with the Kuomintang reactionary clique and which adopt a friendly
attitude towards the peoples of China, and may establish diplomatic relations with them." "The People's
Republic of China may restore and develop commercial
relations with foreign governments and peoples on a
basis of equality and mutual benefit." The foreign
affairs of the Central People's Government in the past
year were conducted in accordance with these basic
principles.

Since the founding of the People's Republic of China,
seventeen countries have established formal diplomatic
relations with our country. They are the Soviet Union,
Bulgaria, Rumania, Hungary, Korea, Czechoslovakia,
Poland, Mongolia, Germany, Albania, Burma, India,
Viet Nam, Denmark, Sweden, Switzerland and Indonesia. Eight other countries—Pakistan, Britain, Ceylon,
Norway, Israel, Afghanistan, Finland and the Netherlands—have also expressed willingness to establish
diplomatic relations with our country. Among them,
four countries—Britain, Norway, the Netherlands and
Finland—are still conducting talks for the establishment
of diplomatic relations with our country.

Friendship With U.S.S.R.

The People's Republic of China resolutely sides with
the world camp of peace and democracy headed by
the Soviet Union and has established the closest fraternal relations with the Soviet Union. During Chairman Mao Tse-tung's visit to the Soviet Union, China and the
Soviet Union signed the Sino-Soviet Treaty of Friendship, Alliance and Mutual Assistance, which is of great
world historic significance. Because of this treaty,
great peoples of the European and Asiatic continents
to the number of nearly 700 million have united in
close alliance militarily, economically and culturally,
and have thus greatly strengthened the power of the
two countries to safeguard themselves against aggression
in the east.

Simultaneously with the signing of this treaty, or a
little later, China and the Soviet Union further signed
the agreements on the Chinese Changchun Railway,
Port Arthur and Dairen, the agreement on the granting
of credit to the Central People's Government of the
People's Republic of China, and five other economic and
trade agreements.

In these agreements, our great neighbour extends
Much generous assistance to China in the period when
she is recovering from her war wounds. The whole
Chinese people are greatly elated with the signing and
implementation of the treaty and agreements between
China and the Soviet Union and express their boundless thanks for the friendship extended to them by the
leader of the Soviet Union, Generalissimo Stalin, and
the Government and people of the Soviet Union.

China has also signed trade contracts and agreements
with Poland, Czechoslovakia and Korea. Trade
negotiations are under way with Germany and Hungary.

Trade relations have also developed between China
and certain capitalist countries. The total amount of
China's foreign trade is estimated not only to reach,
but to surpass the original plans.

Relations With Capitalist States

The problem of the establishment of diplomatic relations with capitalist countries is more complicated
than that of establishing trade relations. Here 1 may
mention, especially, our long-drawn-out negotiations
with Britain, out of which nothing has yet come. The
reason for the fruitlessness of the negotiations is that
the British Government has made known its recognition of the People's Republic of China on the one hand,
while on the other it agrees to permit the so-called
"representatives" of the reactionary rump of the
Chinese Kuomintang clique to continue its illegal occupation of China's seat in the United Nations. This
makes it difficult to commence formal diplomatic
relations between China and Britain. And Britain's
extremely unjustifiable and unfriendly attitude toward
Chinese residents in Hong Kong and other places cannot
fail to draw the serious attention of the Central People's
Government.

Throughout the Chinese people's war of liberation,
the U.S. Government sided with the enemy of the
Chinese people, assisting the Kuomintang reactionaries
with all its might in their attacks on the Chinese people.
The enmity that the U.S. Government harbours towards
the Chinese people has increased since the founding of
the People's Republic of China.

Despite the just criticisms of the Soviet Union, India,
and other countries, the U.S. stubbornly obstructs the
representatives of the People's Republic of China from
attending the United Nations and its various organs,
and shamelessly protects the seat of the so-called
"representatives" of the Kuomintang reactionary rump.
Similarly, the U.S. debars the Chinese representatives
from attending the Allied Council for Japan and plots to exclude China and the Soviet Union in concluding a
peace treaty with Japan, in order to rearm Japan and
retain America's occupation troops and military bases
in Japan.

The U.S. deliberately concocted the assault of the
Syngman Rhee gang against the Korean Democratic
People's Republic in order to expand its aggression in
the East and then, on the pretext of the situation in
Korea, despatched its naval and air forces to invade
Taiwan, a province of China, and announced that the
so-called problem of Taiwan's status should be solved
by the American-controlled United Nations. Moreover,
time after time, it sent its air force, which is invading
Korea, to intrude into the air over the Liaotung
Province of China, strafing and bombing, and sent its
naval forces which are invading Korea to bombard
Chinese merchant shipping on the high seas.

By these frenzied and violent acts of imperialist
aggression, the U.S. Government has displayed itself as
the most dangerous foe to the People's Republic of
China. The U.S. aggressive forces have invaded China's
borders and may at any time expand their aggression.
MacArthur, Commander-in-Chief of the American
aggression against Taiwan and Korea, long ago disclosed
the aggressive design of the U.S. Government, and is
continuing to invent new excuses for extending its
aggression.

Against American Aggression

The Chinese people firmly oppose the aggressive
brutalities of America and are determined to liberate
Taiwan and other Chinese territory from the clutches of
the U.S. aggressors.

The Chinese people have closely followed the situation
in Korea since she was invaded by the U.S.A. The
Korean people and their People's Army are resolute and
valorous. Led by Premier Kim Jr Sen, they have scored
remarkable achievements in resisting the American invaders and have won the sympathy and support of
people throughout the world. The Korean people can
surely overcome their many difficulties and obtain final
victory on the principle of persistent, long-term resistance.

The Chinese are peace-loving people. One hundred
and twenty million Chinese have already signed their
names to the solemn Stockholm Appeal and this signature movement is continuing to develop among the
Chinese people. It is obvious that the Chinese people,
after liberating the whole territory of their own country,
want to rehabilitate and develop their industrial and
agricultural production and cultural and educational
work in a peaceful environment, free from threats. But
if the American aggressors take this as a sign of the
weakness of the Chinese people, they will commit the
same fatal blunder as the Kuomintang reactionaries.

The Chinese people enthusiastically love peace, but in
order to defend peace they never have been and never
will be afraid to oppose aggressive war. The Chinese
people absolutely will not tolerate foreign aggression,
nor will they supinely tolerate seeing their neighbours
being savagely invaded by imperialists. Whoever attempt to exclude the nearly 500 million Chinese people
from the U.N. and whoever set at nought and violate
the interests of this one-fourth of mankind in the world
and fancy vainly to solve any Eastern problem directly
concerned with China arbitrarily, will certainly break
their skulls.